Reading A Merchant Statement Part 2

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Reading A Merchant Statement Part 2

Continuing from last weeks blog, let’s review some more things you need to learn about – not all may apply to you – but many will – so read on.


Summary of Card Fees Continued-

Authorization Fees – This section outlines your authorization fees for the month, broken out by the authorization type. Authorizations occur each time you attempt to process a card, as well as each time you close a batch.

(Note that the fees for batch authorizations will appear under the Visa card type.) Some of the authorization types you may see will be:

* POS/LOC or 950 – The per-authorization charged each time your terminal dials out and connects to the processor, using a local phone number.

* POS- WATS-The per-authorization charged each time your terminal dials out and connects to the processor, using a toll-free phone number.

* VOICE-LOC – The charge for each voice authorization (when you must “call center” for an authorization)

* AVS – the per inquiry charges for Address Verification


You should see the following items listed:

Card type applicable for the fees below it.

Card fee type, including those items explained above

The dollar amount and/or item count used to determine the fee

The per item or percentage rate of the charge

The total charge for that fee, for that card type

The total fees for that card type

The amount of any pre-paid, qualified discount paid throughout the month. This amount

is DEDUCTED from fees total

The total card fees, after deducting any pre-paid qualified discount fee


TIP: How to do the math: 1) ADD up all the figures (total card fees for each card type)

2) SUBTRACT the pre-paid discount figure

3) The difference is the amount charged for Card Fees


TIP: pre-paid qualified discount fee Is also known as a “Daily Discount” and may not apply to your account. If it does apply to your account, you should talk to your representative about why you are on daily discounting.  While some merchants may prefer it, it can make accounting much more difficult.


Next week we’ll tell you more…stay tuned…or call us and we’ll personally educate you.


Contact Merchant Zoom today and we’ll consult with you on your best options.


Headquartered in Pinole California, MerchantZoom, Inc. was founded by Wally Arakozie. Previously employed by one of the largest merchant processing companies here in California for nearly a decade. Since the company’s beginnings MerchantZoom, has grown into a reputable national merchant provider.  Along with delivering state of the art technology and competitive rates, MerchantZoom, thrives on personalized local customer service and support. In order for your business to ZOOM!



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Content Release Date May 15, 2017 – MerchantZoom Inc.

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